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Taking Stock | Another day of healthy gains; Sensex up 713 points, Nifty above 17,100

The Nifty metals index was up 3.86 percent, the IT index was up 1.7 percent and auto gained 1.3 percent

July 29, 2022 / 04:58 PM IST
Representative image.

Representative image.

The Indian equity market extended its positive run to a third day on July 29, aided by positive global cues, a stronger rupee and overall good corporate earnings for the June quarter.

The 30-share BSE Sensex closed near the day’s high at 57,570.25, gaining 712.46 points or 1.25 percent. The Nifty ended 228.65 points, or 1.35 percent, higher at 17,158.25.

Global equity markets continued their strong rally on expectations of the US nearing the end of its rate hike cycle after the Federal Reserve recently raised interest rates by 75 basis points.

The American central bank gave interest rate guidance in the range of 3 percent to 3.5 percent, an indication that the interest rate upcycle may not last long.

"Wall Street staged a robust recovery after a shaky opening due to a contraction in the US economy, as the market perceived that aggressive monetary policy will soon come to an end,” said Vinod Nair, Head of Research, Geojit Financial Services.

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This added optimism to the domestic market, and the rupee strengthened against the dollar, thereby increasing the appetite of foreign institutional investors (FIIs), Nair added. The Indian rupee gained around 43 paise against the dollar.

SBI Life Insurance, Tata Steel, Hindalco, Sun Pharma and HDFC Life were the top gainers on the Nifty, rising 4.5-8.6 percent each. Dr Reddy’s Labs, Kotak Mahindra, SBI, Divis Labs and Axis Bank were the biggest losers, down 0.2-4 percent.

Among the sectors, barring the Nifty PSU bank, all sectors recorded healthy gains. The Nifty metals index was up 3.86 percent, the IT index was up 1.7 percent and auto gained 1.3 percent.

IndexPricesChangeChange%
Sensex59,462.78130.18 +0.22%
Nifty 5017,698.1539.15 +0.22%
Nifty Bank39,042.30162.45 +0.42%
Nifty 50 17,698.15 39.15 (0.22%)
Fri, Aug 12, 2022
Biggest GainerPricesChangeChange%
ONGC139.206.40 +4.82%
Biggest LoserPricesChangeChange%
Divis Labs3,726.20-221.85 -5.62%
Best SectorPricesChangeChange%
Nifty Energy27163.95502.20 +1.88%
Worst SectorPricesChangeChange%
Nifty IT29885.90-347.80 -1.15%

Also read: Sensex, Nifty climb nearly 8% in July as rate hike fears ease, commodities soften, FIIs return

Stocks & Sectors

On the BSE, all sectoral indices ended in the green, the metal index gaining 4.59 percent. The BSE energy index was up 2.4 percent and the oil & gas was up 2.21 percent.

Broader indices mirrored the benchmarks. The BSE midcap index gained 1 percent and the smallcap 1.38 percent.

The India VIX, which indicates the degree of volatility traders expect over the next 30 days, declined sharply by 2.7 percent from 17.01 to 16.55.

A long build-up was seen in SBI Life, Lal Pathlabs and Tata Steel, while short build-up was visible in Shriram Transport Finance, PNB and India Bulls Housing Finance.

Among individual stocks, a volume spike of close to 100 percent was seen in Delta Corp, TVS Motor and Exide Industries.

More than 120 stocks touched their 52-week highs on the BSE. These included Adani Enterprises, Adani Transmission and Ashok Leyland.

Also read:  SBI Life — Solid all-round Q1 numbers, best placed among private life insurers

Outlook for August 1

Prashanth Tapse, Research Analyst, Senior VP (Research), Mehta Equities Ltd

The positive takeaway was that the benchmark Nifty comfortably ended well above its 200-DMA at 17,025. Several momentum stocks, too, did well. As the buying stampede continued, the Nifty ended July with gains of 8.73 percent.

Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas

On July 29, the Nifty crossed the psychologically vital mark of 17,000.

Technically, it scaled above the 61.8 percent retracement of the April–June decline and the 200-day moving average. Thus the index can continue to stretch higher as long as it stays above 17,000. On the higher side, it can test 17,300 in the short term.

Ajit Mishra, VP-Research, Religare Broking Ltd

With major events behind us, the focus would be on earnings and upcoming high-frequency data like auto sales, PMI numbers and GST collection figures for cues. We reiterate our positive view and suggest continuing with the “buy on dips” approach.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty remained strong as the index gained for the third consecutive day. It has sustained above the major short-term moving averages, indicating a positive trend. The daily RSI is in a bullish crossover and rising. The trend is likely to remain positive over the short term.

On the lower end, support is pegged at 16,800-16,775. Resistance can be seen at around 17,400.

Disclaimer: The views and investment tips of experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Gaurav Sharma
first published: Jul 29, 2022 04:58 pm
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